Islamabad 22 July: Pakistan’s trade deficit with Middle Eastern countries grew by over 7% in the financial year 2025, reaching nearly $14 billion.
According State Bank reports Crude oil imports went up by 15% in volume, increasing the trade gap. Data from the State Bank of Pakistan shows that Pakistan still relies heavily on energy from the Middle East, but hasn’t increased its exports much in return.
In the previous year (FY24), the trade gap had actually improved, shrinking by 20% thanks to high fuel prices and lower use of fuel at home.
Key Facts from State Bank Data:
- Exports to the Middle East went down slightly by 1.5%, from $3.16 billion to $3.11 billion.
- Imports from the Middle East increased by 5.6%, from $16.17 billion to $17.08 billion.
To fix this growing gap, Pakistan has signed a free trade deal with the Gulf Cooperation Council (GCC). The goal is to increase exports and build better trade ties.
Country-by-Country Snapshot:
- Saudi Arabia:
- Exports down by 0.8%
- Imports down by 16.6%
- United Arab Emirates (UAE):
- Exports up by 1.9%
- Imports up by 25.8%
- Qatar & Bahrain:
- Exports dropped by 28.7% (Qatar) and 23.4% (Bahrain)
- Imports rose by 4.5% (Qatar) and 7.4% (Bahrain)
- Kuwait:
- Exports fell by 13.9%
- Imports decreased by 6%
